For a review of the main types of critical issues identified within the operations of the Group in Venezuela, please refer to the information provided in this Directors’ Report under the heading “Risk areas and Litigation”.

Puerto Cabello Railway – La Encrucijada

The work consists in building the civil engineering works of a railway stretch of about 110 km, connecting Puerto Cabello to La Encrucijada

In June 2014, Salini Impregilo signed a new contract addendum with the Railway Institute for electromechnical works on the Puerto Cabello-La Encrucijada Line. The value of the work included in the addendum, taking into account the new changes adopted by the Group, mentioned in the first part of this report, is roughly € 350 million. The percentage of work completion as at June 30, 2015, was 88%.

Works continue according to the Forecast made in April 2015, in spite of the many difficulties connected to the Country's complicated economical, political and social situation, particularly with regard to the effect of the inflation that has rapidly impacted production costs, and the payments not made by the Customer.

The government has fixed the elections for the renewal of the Assemblea Nacional (local parliament) to December 6, 2015.

San Juan de los Morros-San Fernando de Apure Railway and Chaguaramas-Cabruta Railway

Salini Impregilo, with a 33.33% share, is involved in the construction of two additional railway lines, “San Juan de los Morros-San Fernando de Apure” (252 km) and “Chaguaramas-Las Mercedes-Cabruta” (201 km).

In addition to the 453 km of new lines, the projects include rail design and installation and the construction of 11 stations and 9 logistics centers.

The percentage of work completion for the “San Juan de los Morros-San Fernando de Apure” section as at June 30, 2015 was 47.3 %.

The percentage of work completion for the “Chaguaramas-Cabruta” section as of June 30, 2015, was 62.2 %.

The Consorcio GEI presented a re-planning proposal of the works of both projects, supposing that these will restart in September 2015. As of today, the Client has not yet provided an answer.